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Article Gets Another $48M to Jingle in Its Jeans

Box means to use the money to double its staff of 140 people over the next 12-18 months and expand internationally, the cloud-based content management company that's seen $29.5 million in VC funding since it was started in a dorm room in 2005 by a couple of soon-to-be college dropouts - well, $14.5 million if you don't count Mark Cuban's angel capital - has gotten another $38 million in equity financing plus $10 million in debt financing.

The handsome D round came from Meritech Capital Partner, new investors Andreessen Horowitz and Emergence Capital Partners and existing ones Draper Fisher Jurvetson, Scale Venture Partners and US Venture Partners. The debt financing is coming from Hercules Technology Growth Capital.

Box means to use the money to double its staff of 140 people over the next 12-18 months and expand internationally beyond the current 15% of its user base.

It says it wants to use its "viral freemium" model to "redefine an industry, much as has done for CRM and NetSuite for ERP."

It competes against DropBox, Sharepoint, Sugarsync, Documentum and the big legacy players like Microsoft's SharePoint.

Co-founder and CEO Aaron Levie blogged that "This is a revolution that is democratizing enterprise software - the cloud has dramatically leveled the playing field for the delivery of services, and for the first time, technology adoption in the enterprise is being driven by the bottom-up."

Obviously, Aaron, 26, wasn't around at the beginning of the PC Revolution or ever talked to anyone who was." Ah, youth.

Box claims five million users and 60,000 companies including 73% of the Fortune 500 use its platform to share, access and collaborate on business content online from PCs, iPads, iPhones and Android devices. Now all it has to do is turn more of them into paying customers. Personal accounts with 5GB of storage are free and business accounts for three+ users run $15 a month a head for 500GB. Unlimited enterprise accounts are negotiated.

It said it would also invest "substantially" in expanding its mobile platform and partner ecosystem.

It has seen 400,000 app downloads for iOS and Android so far, and has 150-odd integrated partner applications such as Salesforce, Google Apps and NetSuite in its Box Apps Marketplace.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at) or paperboy(at), and by phone at 516 759-7025. Twitter: @MaureenOGara

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